Current trend
Yesterday the pair slightly grew and strengthened towards the level of 128.00 amid a weakening in the Japanese currency. The Yen was pressured by Prime Minister of Japan Shinzo Abe commentaries regarding a possibility of the market intervention by the Bank of Japan. He stated that the Japanese economy is not interested in further growth of volatility of the national currency and the regulator is ready to apply all necessary measures if the situation requires.
Support and resistance
Bollinger Bands on the daily chart is slowly moving up while the price range is widening. MACD is about to turn up but yet giving a sell signal. Stochastic is growing as it bounced off the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 127.30 (local low), 126.62, 126.16, 125.77 (11 February low).
Resistance levels: 128.17 (local high), 128.75, 129.13, 129.80, 130.26 (9 February high), 130.63, 131.00, 131.47, 131.84, 132.31 (29 January high).
Trading tips
Long positions can be opened after the breakout and consolidation above the level of 128.28 (with the appropriate indicators signals) with targets at 129.05, 129.73 and stop-loss at 128.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 127.50 with targets at 126.85, 126.35 and stop-loss at 127.90. Validity – 2-3 days
